This paper investigates the impact of development aid on educational outcomes. Existing literature in this field provides some evidence for a positively significant relationship, but the impact appears to be far below what would be necessary to reach the EFA objectives and MDG 2. Empirical results for the education sector also suggest considerable differences in aid effectiveness depending on political governance. This paper goes beyond previous research by differentiating between aid to primary, secondary and tertiary education. Despite the more precise sectoral attribution, this approach does not show any stronger effect of aid.